Growing a business’s leadership team can be complicated, especially when it comes to finding the right kind of help to make a business flourish. A major component to having both leadership and daily operations run smoothly is choosing the right Chief Operating Officer (COO). Fractional Chief Operating Officers (fCOOs) can help businesses create and execute strategies and strengthen daily operations, while a full-time COOs establishes long-term leadership and decision-making. Full-time COOs and fCOOs help businesses with leadership and direction in different ways, but ultimately aim to make a business stronger and more efficient. Which is better for your business, a fCOO or a full-time COO?
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Fractional COO Pros
A fractional COO is a professional operations leader who works on a part-time basis to improve daily operations and help with business growth. A fCOO provides high-level strategic support,, scaling a business, risk mitigation, and creating strategies to improve operations and create efficiency. Some benefits of hiring an fCOO are:
- Cost-effective
- A fCOO is a cost-effective way to add an executive to a business’s team. Instead of a full-time rate, an fCOO is paid through an hourly rate, monthly retainer, per project basis, or any other method tailored to your business’s needs to bring a senior level of talent to a team. This position, hired as a fractional position, is a small portion of the cost of a full time executive, making hiring an fCOO an affordable way to gain expert leadership.
- Flexibility
- A fCOO is a flexible option for adding senior talent to a business’s team, as a fCOO can be added to a business as needed to oversee different projects and daily operations. Hiring a fCOO part-time also allows the hours of the fCOO to be tailored to the business’s needs. They can be hired to step in temporarily until a new COO is found or operate longer term. Hiring a fCOO is an easy way to scale a business and have leadership when needed.
- Access to Expertise
- Hiring an fCOO is a fast way to recruit expert talent to a business’s team. FCOOs work with many different companies to help in various capacities, giving them an extensive knowledge of a COOs role. Kirk W. McClaren, in his Forbes article titled “What is the Fractional Hiring Advantage?,” explains fractional hiring as a way “to skip the imprecise recruiting and onboarding process to go straight to doing the work.” Hiring an fCOO is a quick and easy way to add expert talent to a business who is searching for it.
- Boost in growth
- Hiring a fCOO will bring a boost in growth due to the quick creation and implementation of new procedures and strategies. An fCOO brings a fresh and unbiased perspective to a business to help identify weaknesses and strengths and put new procedures into place to help boost its growth. A fCOO also helps with creating plans to achieve long-term growth for a business.
- Quicker Return on Investment (ROI)
- An fCOO creates a faster ROI by implementing quick and efficient changes and causing a boost in growth. fCOOs create solutions that pull in more revenue for your business while implementing systems that help a business’s longevity. fCOOs are perfect to assist a business in short-term growth and see a fast ROI while creating structures that support a business in the long run.
If you are looking to gain flexible, short-term expertise with a fresh perspective for your business, hiring an fCOO may be a good solution for your business.
Full-Time COO Pros
A full-time COO is a chief operating officer who works with a business daily and generally oversees daily operations. A full-time executive is great for strengthening daily operations and making long-term decisions. Some benefits of hiring a full-time executive are:
- Deep understanding of business
- A full-time executive has a deep understanding of your business because they hold a deeply integrated position within the business. They work with a single business and thoroughly understand the dynamics, culture, and everyday operations of their business.
- Availability
- A full-time COO is available to assist a business because they are working with the business every day. They are always focused on the business and are always available to help with daily operations or making big decisions.
- Greater leadership
- A full-time executive holds a deeper and more authoritative leadership because they are integrated with a business and carry the business’s culture. They also become a part of the leadership team and are seen by the whole business in an authoritative role. With their long-term presence and title builds leadership that employees trust and listen to.
If you are looking to hire an executive to work with long-term, who will 100% of the time be dedicated to your business, while also having a deep understanding of your business and lasting leadership, then hiring a full-time executive can be a great solution for your business.
Fractional COO Cons
Although an fCOO is a flexible and fast way to recruit expert talent, there can be some disadvantages to hiring an fCOO such as:
- Limited availability
- An fCOO may have limited availability due to their schedule and other duties. FCOOs are not working with the same company all of the time and are less present in daily operations. Additionally, fCOOs usually work with other businesses, which can make them less flexible when it comes to emergencies.
- Limited understanding of daily operations
- An fCOO may have a less in-depth understanding of a specific business and its daily workings because they do not interact with a business full-time. FCOOs have a great extent of knowledge from working with other businesses and can get a general idea of a business’s culture, system, and employees from a few interactions. But in order to gain a deeper understanding of a business, an fCOO works closely with the owner or CEO to understand a business’s unique dynamics and inner workings.
- Limited leadership/integration
- A fCOO has less integration with a business due to their shorter time available, which can affect how employees interpret an fCOO’s leadership. An fCOO may be perceived by other executives and employees as having less authority because they were hired on a part-time basis and have not been with a business as long as other executives, making some executives and employees reluctant to follow a fCOO’s advice.
Full-Time COO Cons
Having a full-time executive that is entirely dedicated to a business strengthens leadership and decision-making, but can come with some drawbacks, including:
- Longer hiring process
- A business owner must look at many aspects when hiring a full-time executive, such as personality, leadership style, and other qualifications. Finding a full-time executive can have a longer hiring process to find the perfect candidates with the right expertise and qualifications vs. finding an fCOO who can work with your business and has the necessary skillset.
- More expensive
- Full-time executives tend to be more expensive compared to fCOOs because full-time executives are paid a salary. A full-time executive has other expenses such as benefits that are not required for an fCOO.
- Less flexibility
- A full-time executive has less flexibility for a business because they are paid a salary and devote all of their time to the business. They rely on a single business and work with it daily in exchange for being available to assist at any time.
- Prolonged ROI
- A longer period of time is needed to see the ROI for a full-time COO because they are paid a salary. Full-time COOs are beneficial for long-term growth and guidance for a team, but it can take years for a business to see the true ROI of having a full-time COO. Full-time COOs are great for established businesses that can support a COO salary to see a greater ROI over time
Which is better?
Deciding to hire an fCOO or full-time executive can be different for each business and ultimately depends on the business’s needs. If your business is looking for long-term leadership and help with daily operations, a full-time executive may be a good solution for your business. Or if your business is in need of the creation and implementation of strategies and procedures without the cost of a full-time employee, then an fCOO may be a great fit for your business. Keep in mind that an fCOO could also become a long-term solution for your business.
Things to Consider When Deciding
When deciding whether to hire a full-time executive or an fCOO, consider:
- Current need of your business
- Is the need of your business something that can be fixed quickly, or does your business need some leadership to help it grow and stabilize?
- Budget
- Does the budget of your business allow for salaried help, or would hiring part-time help keep your business stable while giving it a boost of growth?
- Age of business
- Is your business just starting up and could benefit from a boost of help and guidance, or is your business on its feet and looking for someone to invest in it for a longer period of time?
- History
- What has happened within your business in the past? Have you tried a fCOO and it didn’t work, or perhaps you tried a full-time executive and that didn’t work?
If you need assistance with assessing your company and figuring out what your business needs, you can also consider hiring a business consultant to give you a second opinion and map out strategies for your business to grow. Business consultants can help you identify problems and create plans to make your company thrive, help coach and develop leadership, and give expert opinions on whether to hire a full-time or fractional COO. To learn more about what business consulting can do for your business, visit our post on How Business Consultants Can Help Your Business Thrive.
Frequently Asked Questions
What is the difference between a fractional COO and a full-time executive?
- The main difference between a fractional COO and full-time executive is how they are hired. A fractional COO is a seasoned professional that is hired on in a part-time manner and can provide accelerated growth due to their experience. A full-time executive is a professional that is hired full-time and is involved with their company daily.
When should I hire a fractional COO?
- A fractional COO is ideal to hire for small or starting businesses, those experiencing a plateau, and businesses looking to scale. An fCOO uses their diverse experience to help create structures, policies, and procedures to create fast growth and sustain business for long-term growth.
When should I hire a full-time executive?
- A full-time executive is ideal to hire for businesses who are looking for in-depth support that is deeply integrated into a business. Full-time executives are best suited for rapidly growing businesses who could benefit from having an executive that knows the business well and provides daily oversight to keep the business running smoothly.
What can a fractional COO do for a business?
- An fCOO oversees internal teams, strengthens leadership, and supports project management and strategy to create rapid growth and support a business for long-term success. FCOOs create tailored solutions for businesses to give clarity and direction to business strategy and unity to leadership and staff.
What type of businesses benefit most from a fractional COO?
- Growing and scaling businesses can benefit most from hiring an fCOO. A fCOO has the experience and expertise that helps create strong strategies and accelerate a business’s progress. Hiring an fCOO allows a business to hire the senior talent they need without spending a fortune. Outsourcing is also a great way to add specialized talent to a team without the full-time price tag. Check out our post on Outsourcing vs. Hiring to learn more about quickly gaining specialized talent for your team.
Next Steps
If you are ready for advice on whether to hire a fractional COO or full-time executive, WG Business Enterprises can help! Whitney can create a plan for adding leadership to your team and even provide fractional COO services of her own. Schedule a free consultation today and begin building the leadership your business deserves.
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